Overhead Cost in Process Order

Hi All

I need your expert inputs / suggestions to apply the correct method of calculating overheads in process order.


To calculate

a. Labor cost

b. Overhead Cost

c. Depreciation Cost of Machine

in a process order. Also .b. and .c. are dependent on labor time entered (a.)

What I have done:

I am new to PP and CO, so with my limited understanding I have done the following:

1. Created activities for labor, overhead cost and depreciation.

2. Created secondary cost elements

3. Created Standard Value Key

4. Added all the parameters (Labor, OVH, DEP)

5. Created a formula for these parameters

6. And used them in Resource and KP26


With the above setup I get three values (Labor, OVH, Dep) to enter in the process order confirmation. However I need just one field : Labor time, for all the values to be calculated.

As OVH and Dep should use the same time as for Labor parameter but with different rate (as mentioned in KP26) is there a way out where I can just show Labor variable to be entered to the user and other two use that time also!

Or if you feel there can be different approach for the overheads and depreciation to be calculated kindly write back

Thanks in advance